top of page

Case study: 2 HMOs let out to a housing association

Writer's picture: AdminAdmin

The client purchased with a bridge and converted HMO into a 6-bed using her own funds. They then started an exit with a well-known HMO lender, but the company stopped lending due to Covid-19.


The basics:

  • Initial loan of £750,000

  • 75% LTV, including a 10% mezz element

  • Blended rate of 0.99%

  • Completed within 6 weeks

  • Valuation: £1,000,000


Current lender refused to provide an extension and was charging hefty interest and fees. The HMOs were being sold to the housing association that was renting them, and the client just needed a small term while this was finalised. 


The valuation didn’t come in as the client expected, but we still released 75% day one (mezz element), which was a pure ‘like for like’ to allow the client time to complete the sale.



Stay informed!

Thanks for subscribing!

borrow@bridging.group 0207 052 1652 

 FCA Registration number 911250

© 2024 The Bridging Group Ltd

Follow us on social media

  • The Bridging Group Linkedin
  • The Bridging Group Instagram
  • The Bridging Group Facebook
  • X
  • The Bridging Group Youtube
  • The Bridging Group TikTok
  • The Bridging Group Mastodon
London:
The Bridging Group Limited

85 Great Portland Street 
First Floor
London

W1W 7LT

0207 052 1652 

borrow@bridging.group

Kent:
The Bridging Group Limited
Fleet House

Springhead Enterprise Park

Springhead Road

Northfleet

DA11 8HJ

Wish to repay your loan?

E-mail redeem@bridging.group

for your Redemption Statement 

Bridging loans are a short-term funding solution and may not be suitable for all borrowers. They can involve higher interest rates, fees, and financial risks compared to traditional lending.

Failure to meet repayment obligations may result in serious financial consequences, including the repossession of secured assets.

We strongly recommend consulting with an independent financial advisor to assess your individual circumstances.

bottom of page